We define philanthropy as the giving of resources in an engaged and strategic way for maximum impact and in a tax efficient manner. It can include the giving of money, assets, time, talent, voice and one’s social capital. We believe in the power of philanthropy as a great social connector and the source of many great opportunities.

Donating Money

No article on how to give money to good causes is complete without the iconic quote:

“It is more difficult to give money away intelligently than to earn it in the first place.” - Andrew Carnegie (The Gospel of Wealth, 1889).

By 'intelligently', what the steel magnate and one of history’s greatest philanthropists meant is to give in a way that will do the most good, have the greatest impact and the least waste.

It may seem the easiest thing in the world to give money away – but when you take a moment, questions start to occur - How much should I give? To what? To whom? How? Where do I start?

And then the real questions start: how do I know my money is being used well? Could it be used better? Could I multiply the money I give? Should I give over a certain time period?... the list is pretty extensive.

But here are a few basic principles that if you follow will help you make the most of your philanthropic pound.

Give tax effectively: The UK has a generous tax regime for givers. Make sure you take advantage of Gift Aid and if you give regularly do so through a payroll giving scheme. Setting up a charitable account means Gift Aid will be automatically claimed. Find out more about how to give tax effectively at HMRC

Don’t ‘give away’ your money – invest it: ‘Giving away’ money is an old-fashioned concept. Modern philanthropists take an investment style approach. They may still give money to organisations or individuals in grants or one off donations but they first check if they are giving it to effective organisations and they want to understand its ROI. An alternative to giving is to invest money through social investment organisations and funds that recycle the money you give through loans that are repaid.At the far end philanthropic investment spectrum are social investment opportunities that offer a financial, as well as a social return. Find out more about social investment

Once you have decided how you plan to give you can find a charity to support with our Charity Chooser tool.

Below are a few ideas on ways to give according to levels of investment:

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About Us

City Philanthropy – A Wealth of Opportunity is a three-year project funded by the City of London Corporation's charity City Bridge Trust. It aims to promote more effective philanthropy among City professionals earlier in their careers and position the City of London as a leading global centre for philanthropy. To find out more click here